MB:
by raising taxes, they did stop the deficit slide that Ronnie Babe had started.
Yes, Clinton was forced into doing something about the deficit, forced by the "bond vigilantes", and it did have some beneficial effects on the economy. His decision actually upset him quite a bit. He was quoted as being very angry that his grandiose plans for spending programs were blocked, as he is supposed to have said, "by a bunch of f...ing bond traders."
So, he had only two choices. He could cut spending (unthinkable) or raise taxes. Choosing the latter, he could then choose between taxing the middle income folks about a hundred bucks per family, or he could choose to tax the higher income families to the tune of $50,000 or $100,000 each. This seemed "fairer" to Mr. Clinton and Mr. Rubin.
Now, the tax increase didn't mean much to Alec Baldwin or Jane Fonda, but it produced some real lifestyle changes for those in the $300,000 per year income group. (Those guys may have been living up to their income limit just like Joe Sixpack.) In any case, Clinton's decision was purely political, one from which I personally suffered and for which I will detest him forever. I guess that's a disclaimer.
BTW, lest you think I am to the right of Genghis Khan, I agree fully with your thoughts about society's responsibility for the less fortunate.
Jack |
